Stock morning update 3 february 2021

 

Indices at 10:00 am

Nifty50 14,741 ▲ 94 (+0.6%)

Sensex 50,140 ▲ 343 (+0.6%)

Nifty Bank 34,385 ▲ 118 (+0.3%)

---

STOCK MORNING UPDATE

In the news

Coromandel Int’l profits rise in Q3

       The Hyderabad-based fertiliser company’s consolidated net profit rose 26% YoY to ₹334 crore in Q3. its revenue grew 7.7% during the same period. 

      Excessive rainfall in some of its target markets led to the postponement of the Rabi season sowing. However, business was boosted by an 8% YoY growth in the fertiliser segment and strong growth in its biopesticides segment in the US and European markets. The stock traded 2.2% higher today. 

 

Finolex Industries surges on strong Q3 

       Shares of PVC pipe maker Finolex Industries jumped 11% today after it posted a 174% YoY jump in its Q3 consolidated profit after tax to ₹255 crore. Its total revenue rose 53% YoY to ₹1,066 crore. 

      During the quarter, PVC prices rose sharply due to supply constraints. Better unit realisation helped the company improve EBIT margins in the PVC resin business from 20.1% in Q3 of the previous fiscal to 35.5% this year.

 

MRPL’s Q3 in loss on low throughput

       Mangalore Refinery and Petrochemicals, a subsidiary of ONGC, reported a loss of ₹71 crore in Q3 versus a loss of ₹37 crore during the same period last year. At ₹14,136 crore, revenue from operations saw a 15.5% contraction. 

     The drop in performance comes on account of a 24% YoY fall in throughput to 3.08 million tones. On the upside, the oil refining company’s gross refining margin at $3.26 per barrel was up by around 2%. The stock was down 1.9% today.

 

Reliance Infra’s Q3 net profit slips 77%

         Reliance Infrastructure has reported a 76.8% YoY decline in its Q3 consolidated net profit   to ₹80 crore. 

       The consolidated income from operations in Q3 dipped 3.1% YoY to ₹3,831 crore.

      The company has ₹60,000 crore of receivables pending for 5-10 years before various forums, including regulatory and arbitration tribunal. It has used proceeds from sale of assets to pare debt, which was down 25% to ₹13,100 crore. The stock was up 2.1% today.

 

Events this week

          Wednesday: Services PMI (India), Crude oil inventories (US)

       Thursday: Initial jobless claims (US)

        Friday: RBI interest rate decision (India)

---

Sectoral indices

Top gainers	Top losers
Nifty Fin Serv ▲ 4.6%	NA
Nifty Bank ▲ 4.1%	NA

 

Global markets	Today's movement
Nikkei 225 (Japan)	▲ 0.7%
Hang Seng (Hong Kong)	▼ 0.4%
SSE Composite (China)	▲ 0.2%
Dow Jones (US)	▲ 1.5%

Fact of the day

Nestle's popular Kitkat brand of chocolates is made by Hershey’s in the United States.
Source: Hershey’s

Tweet this

---

If you haven't already, open your Upstox account to get

 IPO-ready today! Click here to sign up. 

---

Disclosures and Disclaimer

 

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.

Upstox Team

Authorised Partner

Stocks morning update 1 february 2021

 

Indices at 9:30 am

Nifty50 13,722 ▲ 87 (+0.6%)

Sensex 46,635 ▲ 349 (+0.7%)

Nifty Bank 31,120 ▲ 555 (+1.8%)

---

STOCKS MORNING UPDATE

In the news

ICICI’s Q3 profits beat street estimates

        India’s second-largest private bank by market capitalisation reported a profit of ₹4,939 crore in Q3, a 19% YoY growth. Analysts had estimated Q3 profits at ₹4,242 crore. The growth—driven by a rise in retail loan demand—comes despite the bank raising bad loan provisions by 31% to ₹2,741 crore.

Its gross NPA ratio dropped from 5.1% to 4.3%, while net NPAs dropped from 1% to 0.6% on a sequential basis. The stock was trading 4.6% higher today. 

 

IDFC First improves asset quality

        For Q3, IDFC First Bank reported a net profit of ₹130 crore, versus a loss of ₹1,639 crore in Q3 last year and a profit of ₹101 crore in Q2 this fiscal. 

The bank’s asset quality improved as net NPAs dropped to 0.3% from 1.2% in Q3 of last year. Recently, the bank launched a credit card with rates as low as 9% per annum. The stock has gained nearly 27% in January and is down 5.4% today. 

 

Cloud adoption boosts Tech Mahindra’s Q3  

        Although revenues were flat at ₹9,647 crore, Tech Mahindra’s net profit rose 14.3% YoY to ₹1,310 crore in Q3. On a constant currency basis, revenue grew 2.8% QoQ. 

The Pune-based IT services company bagged deals totalling to $455 million in Q3. It expects increasing adoption of cloud technologies and artificial intelligence-based solutions to drive business growth in the coming quarters. Further, the company plans to reduce its BPO business headcount by 5,000 this fiscal by automating operations. Shares of the company were down 3.4% today.

 

JK Lakshmi Cement's Q3 soars on volume growth

          A rise in volumes and improved efficiency helped the cement maker post a consolidated net profit of ₹118 crore in Q3, a 132.9% YoY growth. Revenue for the quarter rose 16.8% YoY to ₹1,259 crore.

 
After a 32% rise in Q3, the stock witnessed some profit booking in January and was down nearly 6%. It is trading 1.0% lower today.

 

Silver spikes on retail buying interest

          Silver prices spiked as high as 6% today on the buzz that retail traders on Reddit forums have now turned their attention to commodities, especially on silver. 

Recently, their trading activity fueled strong rallies in heavily shorted US-based stocks such as GameStop and AMC Entertainment.

 

Events this week

           Monday: Union Budget 2021, Manufacturing PMI (India)

        Wednesday: Services PMI (India), Crude oil inventories (US)

        Thursday: Initial jobless claims (US)

         Friday: RBI interest rate decision (India)

---

Sectoral indices

Top gainers	Top losers
Nifty Bank ▲ 1.8%	Nifty Pharma ▼ 0.8%
Nifty Fin Serv ▲ 1.4%	Nifty IT ▼ 0.4%

 

Global markets	Today's movement
Nikkei 225 (Japan)	▲ 1.2%
Hang Seng (Hong Kong)	▲ 1.9%
SSE Composite (China)	▲ 0.1%
Dow Jones (US)	▼ 2.0%

Fact of the day

Besides humans and apes, koalas are the only animals with fingerprints.
Source: Live Science

Tweet this

---

If you haven't already, open your Upstox account to get IPO-

ready today! Click here to sign up.

---

Disclosures and Disclaimer

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.

Upstox Team

Authorised Partner

Stock market recap for 29 january 2021

 

Nifty50: 13,634 ▼ 182 (-1.3%)

 Sensex: 46,285 ▼ 588 (-1.2%)

---

The markets opened with a gap-up but kept drifting downward throughout the day, barring a few brief surges into the positive. However, towards the end, they plunged into the red. The selling was broad-based as 43 of the Nifty50 stocks declined today.

Among the sectoral indices, the Nifty PSU Bank and Nifty Bank rose 1.6% and 0.6%, respectively, while the Nifty Auto (-2.8%) and Nifty IT (-2.5%) were the top losers today.

 

Top gainers	Today's change
IndusInd	▲ 6.1%
Sun Pharma	▲ 4.2%
ICICI Bank	▲ 2.0%

 

Top losers	Today's change
Dr Reddy's	▼ 5.3%
Maruti	▼ 4.8%
Hero Moto	▼ 3.6%

---

STOCK MARKET RECAP

Here are the top stories of the day. 

Sun Pharma’s Q3 beats street estimates

       The pharma major reported Q3 net profit of ₹1,853 crore, beating street estimates of ₹1,379 crore. Crucially, net profit more than doubled from ₹914 crore during the same period last year. The consolidated revenue rose by a more modest 8% to ₹8,837 crore. 

The surge in profits is a result of an increase in other income and improvement in global speciality sales owing to recovery from the pandemic. The company also announced an interim dividend of ₹5.5 per share. The stock closed 4.2% higher today.

 

Tata Motors’ Q3 earnings rise on JLR bounce back

       The automaker posted an impressive rise of 67.5% YoY in consolidated net profit to ₹2,941 crore. The numbers beat the street estimates of ₹1,173 crore by a wide margin. 

Meanwhile, revenue from operations rose 5.5% to ₹75,654 crore. The major driving factor was Jaguar Land Rover, which delivered an impressive 38.1% YoY rise in its profit before tax. 

On the domestic front, passenger vehicles and commercial vehicles showed marked improvement with 78% and 21% YoY rise in revenues, respectively. The stock has risen over 40% this month ahead of the results but was down 1.5% today.

 

Shriram Transport soars on improved asset quality

        The used-vehicle and fleet financer’s net interest income for Q3 rose by 2% to ₹2,202 crore, beating street estimates of ₹2,076 crore. However, net profit declined 17% to ₹727.7 crore, owing to a nearly 52% YoY increase in loan provisioning, which stood at ₹674 crore. 

Its asset quality showed sharp improvement with net NPA at 3.22% as compared to 6.09% last year. The disbursements rose 9.9% YoY. The stock surged 16.2% today.

 

Dr Reddy’s Q3 underperforms expectations 

  

       The shares of Dr Reddy’s Laboratories fell 5.3% today as the company reported a consolidated net profit of ₹20 crore for Q3 versus street expectations of ₹709 crore. The profits were impacted by an impairment charge of around ₹600 crore. 

Its revenues grew 12% YoY to ₹4,941 crore, driven by new product launches and volume increase in the European and Indian businesses which grew 34% YoY and 26% YoY, respectively. 

 

Pre-Covid growth levels expected in two years

       As per the 2021 Economic Survey, India is expected to grow at 11% in FY22, 6.5% in FY23 and 7% in FY24. However, as the rollout of the vaccines picks up traction, economic activities would get normalized, leaving upside potential to the above estimates. 

What is also encouraging is that the Indian government may continue its expansionary fiscal stance in order to sustain the recovery in demand.

 

Closing bell

This week, the Indian markets witnessed a 5% decline, the steepest weekly fall in the last eight months. Not just Indian markets, even major equity markets globally are reeling under volatility and selling pressure. The India VIX has risen 20% this month, which suggests that traders expect volatility to rise in the days ahead.
On Monday, sector-specific movements based on Budget announcements will be the order of the day. Generally, most Budget positives and negatives get factored in the price on the same day.

---

Good to know

What is an InvIT?
Similar to a mutual fund, an infrastructure investment trust or InvIT is an instrument that allows individuals and institutional investors to pool together capital to develop infrastructure projects. The investors earn a small portion of the income from the project as a return.

---

Haven't tried out Upstox yet? Click here to open your

 account now!

---

Disclosures and Disclaimer

 

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.

Upstox Team

Authorised Partner